Legislation effective July 1, 2013, includes numerous tax increases, most notably in the state retail sales and use tax rate from 4 percent to 4.3 percent.
An additional sales and use tax will be imposed at the rate of 0.7 percent in each county and city within a planning district that, as of January 1, 2013, meets certain prescribed criteria. Currently, Hampton Roads and the Northern Virginia Region are the only qualifying jurisdictions. In other words, citizens of Hampton Roads and the Northern Virginia Region will see total sales and use tax rate increase from 4 percent to 5 percent on all retail items. Food purchased for human consumption is not subject to the additional tax. Food will be taxed at the state rate of 4.3 percent.
The sales tax rate on motor vehicles, which is currently 3 percent, was also amended. A rate of 4.15 percent will be phased in over four years.
The legislation establishes procedures for the collection of the state and local sales and use taxes from remote sellers for sales made in Virginia, contingent upon the federal government passing legislation requiring such collection.
If you have any questions, please contact Nathaniel Kupferman at email@example.com or 202.480.2710.
The views express in this article are those of the author and do not necessarily reflect the position or policy of Berkeley Research Group, LLC.
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